Benson Inc During 2017, Benson Purchased $1,450,000 of Raw Materials, Incurred Direct

question 108

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c c } & \text { Dec. } 31,2016 & \text { Dec. 31, 2017 } \\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished goods inventory } & 100,000 & 92,000\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2017 for Benson?

• A)$1,864,000
• B)$1,876,000
• C)$1,860,000
• D)$1,872,000

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Definitions:

Fat Decreases

A reduction in the amount of adipose tissue in the body, which can be due to diet, exercise, or metabolic factors.

Fatty Deposits

Accumulations of fat within the body, often in specific areas such as the arteries, liver, or around the abdomen, which can impact health.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to various parts of the body.

Plaque

A deposit of fatty substances on the inner lining of arterial walls, which can lead to cardiovascular diseases, or a film of bacteria that forms on teeth, leading to dental issues.